On April 9, 2025, the Law Offices of Frank R. Cruz announced a class action lawsuit against Manhattan Associates, Inc. (NASDAQ: MANH) on behalf of investors who acquired the company’s securities during a specified period. This legal action has arisen in the wake of a significant drop in stock price following a disappointing financial results announcement earlier this year.

2. Key Dates and Details of the Class Period

The class action encompasses investors who purchased shares of Manhattan Associates from October 22, 2024, to January 28, 2025. Those affected by the alleged securities fraud have until April 28, 2025 to file a motion to be appointed as lead plaintiff in the case.

3. The Financial Fallout

Jan. 28, 2024, marked a pivotal moment for Manhattan Associates when the company reported its fourth quarter and full-year financial results. During this announcement, the company guided for reduced revenue forecasts for the year 2025, attributing the downward revision to a “shift in professional services work to future periods” and “reduced customization and higher partner utilization.” This news triggered a dramatic reaction in the stock market, causing Manhattan Associates’ share price to plummet by $72.26, or 24.5%, closing at $222.84 per share on January 29, 2025. Such a steep decline has raised concerns among investors regarding the integrity of the company’s previous financial communications.

4. Allegations of Misleading Statements

The lawsuit claims that throughout the class period, the defendants—presumably company executives and board members—made materially false and misleading statements about Manhattan Associates’ operations and future prospects. Specifically, the complaint alleges that:

The Company’s Service Segment was not adequately prepared to meet the “responsible targets” that had been set.

As a result, the optimistic statements regarding the company’s business health were misleading and lacked a reasonable basis.

These allegations suggest a significant disconnect between the company’s public statements and its actual operational capabilities, leading to investor losses.

5. Call to Action for Investors

The Law Offices of Frank R. Cruz are encouraging any investors who suffered losses due to their investment in Manhattan Associates during the class period to inquire about their legal rights. Investors are urged to consider filing a claim to potentially recover their losses as part of the ongoing securities fraud lawsuit.

6. Conclusion

The situation surrounding Manhattan Associates serves as a stark reminder of the potential risks inherent in stock investments, particularly when it comes to corporate disclosures and financial health. As the class action moves forward, investors will be closely monitoring developments, particularly the outcome of the lawsuit and any further disclosures from the company. Those who believe they have been adversely affected are encouraged to take action before the April 28 deadline.

Original press release